Unions snub Ryanair's fresh bid for Aer Lingus

By Jonathan Saul

DUBLIN (Reuters) - Unions representing workers at Aer Lingus (AERL.I) on Friday rejected guarantees given by Ryanair (RYA.I) to maintain their representation as part of its 750 million euro (650 million pound) bid for the former state airline.

Ryanair is trying to appeal directly to the government and employees, which own more than 25 percent and 14 percent of the carrier respectively, after Aer Lingus' board this week rejected the all-cash offer -- for the second time in two years.

"The corporate culture of Ryanair is just something that is a complete anathema to our members," said Niall Shanahan, communications officer with the IMPACT union.

"An approach from Ryanair, having been through this process already, is something instinctively they would want to reject."

The Employee Shareholder Ownership Trust (ESOT), which administers Aer Lingus employees' shareholdings and is a separate entity to the unions, is expected to meet on Monday to discuss Ryanair's bid, a source familiar with the matter told Reuters.

The Irish government has said it would wait until Ryanair tabled a formal offer, expected within the next two weeks, before giving its opinion.

Ryanair, which is Europe's biggest budget airline and already owns nearly 30 percent of Aer Lingus, said on Thursday it would recognise trade unions at the airline in contrast to its own company policy.

Ryanair said it would give the Irish government control over Aer Lingus' valuable landing slots at London Heathrow airport and restore the Shannon-Heathrow route.